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"A single room house may create more problems for a slum-dweller when his family grows further. A single room house does not provide privacy. As a result government has plans to not only increase size of the rooms but also add another room for each family. The altered plan will be considered after general elections are over," a highly-placed government official told BS.
The RAY authorises the government to extend financial assistance and assign property rights to slum-dwellers for shelter and basic civic and social services on sites where the slum-dwellers are living at present.
The scheme was launched as pilot project in six cities of Bhopal, Gwalior, Indore, Jabalpur, Sagar and Ujjain. Later 10 more cities joined the scheme.
If a modified plan is implemented the state government will have to seek more funds for the purpose though bankers turn the willing participants away for loans. "Not only housing but in other projects also bankers refuse to disburse loans, but state government would tie-up with other banks or own resources," the official said.
On the other hand bankers have to play safe as none wants to run the risk against any housing loan. They are reportedly not ready to fund less than 13 per cent interest rates. A mortgage risk guarantee fund has yet to availed by the government. "Bankers hesitate to fund such schemes when borrower is a poor. But state government would soon sort out the issue," the official said, "as no encroacher will be entitled for title of the land under the RAY."
Under the scheme any slum-dweller holding a lease or patta allotted by state government before December 31, 2007 or latest by December 31, 2011 is entitled to hold a title against the government land on which he lives.
Each beneficiary is required to contribute at least 20 percent of the total amount. The scheme, according to urban development department sources, needs approximately Rs 5000 crore or more to implement as there are 1,300 and more slums in four towns like Indore, Bhopal, Gwalior, Jabalpur and Sagar.
